Today's Labour News

This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.

Numsa rejects Eskom tariff hike, vows to take on IPPs, unbundling

Details

Monday, 11 March 2019 05:53

Fin24 reports that the National Union of Metalworkers of SA (Numsa) said in a statement on Sunday that it rejected the tariff increase that the National Energy Regulator of SA (Nersa) has granted Eskom.

Nersa on Thursday approved electricity hikes of 9.41%, 8.1% and 5.2% for the next three financial years. But, with inclusion of the 4.4% increase previously approved, the hike will total 13.81% for 2019/20. According to Numsa, any increase in electricity tariffs, no matter how small, would be "disastrous for the working class and the poor who are already unable to afford electricity at its current rate". In the view of the union, the tariff increases would also deepen the crisis for industries, particularly small to medium businesses, likely leading to retrenchments. Numsa blamed agreements signed with Independent Power Producers (IPPs) for Eskom's tariff hike. The union also expressed concern that the introduction of IPPs would lead to the shutdown of some coal-fired power stations in Mpumalanga, resulting in huge job losses. "We will intensify our mobilisation in communities and all members of the working class to reject this tariff increase, the IPPs and government’s plans to privatise Eskom through unbundling," Numsa warned.